Police boats surround Garbage Island on Lake Michigan, which three Vicious Circle goons are using as a makeshift hideout as they inspect crates full of stolen weapons. Officer Alex Wilde takes a bullhorn to inform the villains that if they don't surrender, they'll be forced to call in Officer Dragon to take care of them. Sgt. Walt Gilroy shows concern that Dragon isn't even around and that they have no way of making good on their threat, but Alex informs him that Dragon is already inside waiting for them. While the criminals refuse to give up, Dragon then bursts through the floor taking out OpenFace and sending another Vicious Circle member running. Basher pulls out a detonator and threatens to blow the entire place up but drops it during a struggle with Dragon. As they both get to their feet, Basher accidentally steps on the detonator and causes the whole place to explode. Dragon swims to a nearby boat to assure his fellow officers he's unharmed and to tell them to round up Baser and OpenFace. When they reach the dock, the police are bombarded by news reporters questioning Dragon's motives and his methods. Dragon denies that he's just as bad as the criminals he's putting away but takes the opportunity to address OverLord himself, stating that while he's able to stop various Vicious Circle schemes, the armored kingpin still evades him. OverLord is seen watching the report and begins putting together a plan that will allow he and Dragon to finally face off.

While on patrol, Dragon and Alex receive a call from Lt. Frank Darling concerning the weapons they just confiscated from the Vicious Circle. As he begins to explain that he may suspect they weren't made in the United States, he begins to scream and the radio cuts out. The two officers race to Frank's house to find his wife, Mildred, who didn't see anything but is scared for her missing husband. Dragon investigates a giant hole in the side of the house and notices a sticky substance left behind by whoever took Frank. He and Alex spot a figure across the street and begin to chase after him which leads them to search the sewers discovering the mutant freak called Arachnid. The chase leads back up to the street and as Dragon attempts to avoid an oncoming truck, Alex is then taken.

The news continues to criticize Dragon for allowing his partner to be kidnapped as well as causing severe damage to the truck that hit him. News producer R. Richard Richards celebrates that his angle to discredit Dragon seems to be working.

Alex wakes up in the basement of R. Richard Richards' office building with Frank, covered in webbing, as OverLord and Arachnid discuss how Dragon is too powerful to be their enemy and would serve better on their side. Using the two police officers as bait, OverLord leaves an invitation behind for Dragon to meet him at Wrigley Field to discuss joining his team. Dragon eventually finds his way to the building and discovers a fake name in the directory that he suspects is OverLord. He finds Basher waiting for him. A battle ensues that causes the entire building to shake. Up in Richards' office, he is made aware of Dragon's presence and suspects he's there as a personal vendetta against him for all the negative press. With Basher defeated, Dragon releases his friends and is attacked by Arachnid. After knocking out the big red monster, OverLord arrives and tries to convince Dragon he was one of his top agents before losing his memory. Dragon doesn't buy it and the two engage in a battle that leads them to the roof of the building which OverLord is knocked off of. Richards ambushes Dragon with a news crew in an attempt to catch him red-handed, but when Dragon explains that newspaper ink was left behind at a crime scene that led him to discover Richards harboring villains in his building he backs off and claims he didn't know they were there. When questioned further, Dragon sets the record straight by assuring viewers that he serves the side of justice.